Ontario To Use Peak Property Values As Basis For '09 Taxes

January 12, 2009 2:23 p.m. EST

Toronto, Ontario (AHN) - Ontario property owners are up in arms over the planned use by the provincial government of peak January 2008 home values as basis in assessing their 2009 real property taxes.

In December, the Coalition After Property Tax Reform and the Waterfront Ratepayers After Fair Taxation wrote Ontario Finance Minister Dwight Duncan to point out the 2008 assessment is out of line with current market conditions.

The two groups has the support of Conservative MPP Tim Hudak and NDP leader Howard Hampton who called on Ontario Premier Dalton McGuinty to review the province's assessment process. Hudak pushed that Ontario begin a new cycle of yearly assessments instead of using for the next four years market values based on January 2008 levels, which was the peak.

Hudak proposed that hikes in 2008 assessment should have a ceiling based on a maximum of inflation rate, while assessment decrease should be fully realized. Hampton suggested the freezing of property tax assessments until a unit is sold, leased or undergoes major renovation.

The CAPTR said Ontario should follow the footstep of British Columbia which junked its 2008 assessment that are no longer realistic and instead used the 2005 data in assessing 2009 realty taxes.